Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
Smart Summary

Judgment Summary — Appeals arising from S. 33, Agriculturists' Relief Act

Factual and Procedural Background

A mortgage was executed on 11-7-1873 by Sm. Rupa Kunwar in favour of Newaj Rai over a one-third share in a Mahal (initially described in small currency shares). The present appellant is the successor-in-interest of Newaj Rai. Two suits for accounts in respect of that mortgage were instituted by successors-in-interest of two brothers of Ram Baran Das: (a) successors of Sheo Saran Das (S.A. No. 1501 of 1946) and (b) successors of Ritu Baran Das (S.A. No. 1270 of 1947).

The trial Court dismissed the suits. The lower appellate Court set aside that decree and decreed the suits in favour of the respondents, granting a declaration that on accounting no money was due under the mortgage. The appellant appealed to this Court against that decree in two separate appeals corresponding to the two respondent groups.

There is an earlier decision in Suit No. 262 of 1903 (and Appeal No. 138 of 1904) concerning property then alleged to belong to successors of Sheo Saran Das. The present appeals raise, inter alia, contentions of adverse possession, res judicata based on the 1903 decision, and a contention invoking estoppel under Section 43 of the Transfer of Property Act.

Legal Issues Presented

  1. Whether the appellant had acquired title to the mortgaged property by adverse possession so as to extinguish the mortgage.
  2. Whether the judgment in Suit No. 262 of 1903 (and Appeal No. 138 of 1904) operates as res judicata and thereby bars the respondents from claiming that the mortgage still existed and that accounting is maintainable.
  3. Whether, alternatively, the decision in Suit No. 262 of 1903 gives rise to an estoppel (relying on principles in Section 43, Transfer of Property Act) that would prevent the respondents from asserting their present title.

Arguments of the Parties

Appellant's Arguments

  • The appellant contended that it had acquired title to the mortgaged property by adverse possession, extinguishing the mortgage and precluding any accounting claim.
  • The appellant asserted that the decision in Suit No. 262 of 1903 (and Appeal No. 138 of 1904) operated as res judicata against the respondents, barring their present claim that the mortgage still existed.
  • As an alternative, the appellant argued that the earlier decision produced an estoppel against the respondents under the principle found in Section 43 of the Transfer of Property Act (referred to by counsel as "feeding the estoppel"), such that respondents are precluded from denying that the property had belonged to Sheo Saran Das and had been sold and purchased by the appellant's predecessor.

Respondents' Arguments

  • The respondents maintained that no title had been acquired by the appellant by adverse possession (a finding concurrent below).
  • In relation to the earlier Suit No. 262 of 1903, the respondents' title claimed in that suit differed from the title now asserted: in 1903 they claimed full ownership by survivorship on the death of Ram Baran Das, whereas in the present suit they claim as reversioners of Ram Baran Das treating him as a separated brother and accepting that Sm. Rupa Kunwar had a limited/last interest.
  • Implicitly, respondents disputed that the 1903 decision created any estoppel preventing them from asserting the title they now claim as reversioners following the death of Sm. Rupa Kunwar.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Prosanna Kumar v. Srikantha, 40 Cal. 173 Illustration that execution/auction sales stand on a different footing from voluntary transfers for the purpose of estoppel; a decree-holder cannot set up a secret encumbrance against an execution purchaser, but a judgment-debtor is not estopped from later disputing the purchaser's title. The Court held this authority provided no assistance to the appellant's estoppel argument and relied on its reasoning to conclude that Section 43 principles (estoppel by voluntary transfer) do not apply to auction/execution sales; thus the earlier execution sale does not estop the respondents from asserting subsequently acquired title.
Varnum v. Ahhat, (1815) 12 Mass 474 Represented an authority stated to have held that the extent of an execution raises an estoppel as much as in the case of a conveyance (an American view mentioned in the Calcutta case). The Court noted this authority only as mentioned in the Calcutta decision; but observed that many American cases took a contrary view and used this context to support the conclusion that execution sales do not give rise to the estoppel relied upon by the appellant.

Court's Reasoning and Analysis

The Court proceeded in stages, applying the facts precisely as found below and the legal principles cited in the record:

  1. Adverse possession: Both the trial Court and the lower appellate Court had concurrent findings that the appellant had not acquired title by adverse possession. The Court saw no reason to disturb that concurrent factual finding and therefore did not entertain arguments based on adverse possession.
  2. Distinctness of the two appeals: The Court observed that the res judicata contention based on Suit No. 262 of 1903 arose only in S.A. No. 1501 of 1946 (the Sheo Saran Das successors' matter) and did not concern S.A. No. 1270 of 1947 (Ritu Baran Das successors). Because the 1903 judgment related only to the property alleged to have passed into the hands of Sheo Saran Das's successors, the appeal concerning Ritu Baran Das was not affected and, accordingly, that appeal failed (the appellant's counsel did not press it).
  3. Res judicata analysis for S.A. No. 1501 of 1946: The Court carefully examined the issues decided in Suit No. 262 of 1903 and whether they were the same title or cause of action as in the present suit. The lower civil Judge had held that the respondents in the present suit were litigating under a different title than in 1903. The Court agreed: in 1903 the respondents claimed full ownership by survivorship on Ram Baran Das's death; in the present suit they claimed as reversioners, treating Ram Baran as a separated brother and accepting Rupa Kunwar's limited title. Because the titles and causes of claim were materially different, the earlier decision did not operate as res judicata against the respondents' present claim.
  4. Estoppel/Section 43 argument: The appellant urged that, even if res judicata did not apply, the 1903 determination should estop the respondents from now asserting title, invoking the principle embodied in Section 43 of the Transfer of Property Act. The Court analyzed the nature of the transfer on which the appellant relied: the transfer to Newaj Rai resulted from an auction/execution sale, not a voluntary conveyance.
  5. Applicability of Section 43: The Court explained that Section 43 (which creates an estoppel in the case of a voluntary transferor guaranteeing title) is inapplicable to auction or execution sales. The reasoning (as drawn from the cited Calcutta decision and authorities) is that in an execution sale the judgment-debtor does not guarantee title to the purchaser; the purchaser takes only what the judgment-debtor had. The Calcutta decision (Prosanna Kumar v. Srikantha) was invoked to show that a decree-holder might be estopped from asserting a secret encumbrance, but a judgment-debtor is not precluded by estoppel from later asserting a subsequently acquired title.
  6. Conclusion from estoppel analysis: Given that the sale to the appellant's predecessor was by auction/execution and not a voluntary transfer, the respondents were not estopped by Section 43 from asserting title as reversioners following the death of Sm. Rupa Kunwar. Thus the estoppel argument failed.
  7. Result on issues: Having disposed of the adverse possession claim (no disturbance of concurrent factual findings), the res judicata contention (different titles), and the estoppel contention (Section 43 inapplicable to execution sales), the Court concluded there was no merit in S.A. No. 1501 of 1946. Combined with the failure of S.A. No. 1270 of 1947 for the reasons noted, both appeals failed.

Holding and Implications

Holding: Both appeals are dismissed with costs.

Implications:

  • The decree of the lower appellate Court (which had set aside the trial Court's decree and decreed the suits in favour of the respondents, declaring that on accounting no money was due under the mortgage) remains effective as against these appeals.
  • S.A. No. 1270 of 1947 failed because the earlier decision in Suit No. 262 of 1903 did not concern the property now in dispute in that appeal; the appellant did not press that appeal before this Court.
  • S.A. No. 1501 of 1946 failed because the earlier decision in Suit No. 262 of 1903 did not operate as res judicata (the titles litigated were different) and because the estoppel principle said to arise under Section 43 of the Transfer of Property Act does not apply to auction/execution sales; consequently the respondents are not estopped from asserting their present title as reversioners.
  • No broader legal principle or novel precedent was announced by this judgment beyond applying settled distinctions between voluntary transfers and execution/auction sales for the purpose of estoppel and confirming that concurrent factual findings of no adverse possession were not to be disturbed on appeal.
K.S

Appeals dismissed.

    Kamta Rai v. Nand Kishore

    1. Both these appeals arise out of one single suit under S. 33, Agriculturists' Relief Act for accounts in respect of a mortgage which was executed on 11-7-1873, by one Sm. Rupa Kunwar in favour of one Newaj Rai. The appellant in both these appeals is the successor in interest of Newaj Rai, the mortgagee. The respondents in S.A No. 1501 of 1946 are the successors-in-interest of Sheo Saran Das, brother of Ram Baram Das who was the husband of the mortgagor, Sm. Rupa Kunwar. The respondents in the other 8. A. no. 1270 of 1947, are the successors-in-interest of Ritu Baran Das, another brother of Ram Baram Das. The mortgage was executed by Sm. Rupa Kunwar in respect of one-third share in Mahal Ritu Baran Das, which was at first designated as 4 pies Angrezi out of 1 anna and later as anna 5 pies 4 share out of 16 annas. The suits had been filed by the respondents of both these appeals for account in respect of that mortgage against the successor of their common mortgagee, Newaj Rai.

    2. The appellant contested the suit inter alia on two grounds. One ground was that the appellant hid acquired title to the property which was included in the mortgage by adverse possession, the mortgage had been extinguished and, therefore, there can be no suit for accounting in respect of it. The second ground was that there had been a decision inter partes in Suit No. 262 of 1903 which was followed by App. No. 138 of 1904, and it operated as res judicata and the plea taken by the respondents that the-mortgage still existed and there can be accounting in respect of it was, therefore, not open to them. Various other grounds were also taken in the two lower Courts but I am not concerned: with them in this second appeal. The trial Court had dismissed the suit but the lower appellate Court set aside that decree and decreed the suit in favour of the respondents granting a declaration that on accounting no money at all was due under the mortgage in suit. It is against this decree that these two appeals have been filed in this Court. Two separate appeals have been filed because in one appeal the decree passed by the lower Court in respect of the mortgage deed and the property belonging to the successors of Shea Saran Das is in dispute and in the other in-respect of the mortgage deed and the property belonging to the successors of Ritu Baran Das is in dispute. Except for the two grounds mentioned by me above no other ground has been pressed before me in this appeal. Even in support of the-ground that the appellant had acquired title by adverse possession, no arguments were advanced. There is a concurrent finding of both the Courts that no title has been acquired by the appellant by adverse possession and, therefore, there is no reason to disturb that finding. The only ground that has been strenuously pressed is that of operation of the principle of res judicata based on the decision in Suit No. 262 of 1903 and App. No. 138 of 1504. This question arises only in S. a. No. 1501 of 1946 and does not concern the S. a. No. 1270 of 1947 at all. The judgment in Suit No. 262 of 1903 was only in respect of property which was alleged to have passed into the hands of the successors of Sheo Saran Das and not the property which passed into the hands of the successors of Ritu Baran Das. Since this issue does not affect the S. a No. 1270 of 1947 at all, this appeal obviously fails. The learned Counsel for the appellant him-self stated that he could not press this appeal.

    3. Coming to the S.A No. 1501 of 1946, we have to examine the facts and circumstances in which Suit no. 262 of 1903 came to be filed and decided. The mortgagee, Rupa Kunwar, died in the year 1899; thereafter in 1903, this Suit No. 262 of 1903, was brought by the successors-in-interest of Sheo Saran Das alleging that they were owners of half the share in the property which had stood in the name of Sm. Rupa Kunwar. Their allegation was that Ram Baran Das, the husband of Sm. Rupa Kunwar had been a member of undivided Hindu family with his brothers, Sheo Sarn Das and Ritu Baran Das and he was still a member of this joint Bindu family at the time of his death. No property, therefore, passed to Sm. Rupa Kunwar by succession from Ram Baran Das. However, for her satisfaction and maintenance, certain property was put in her name She died and the mortgage executed by her in favour of Newaj Rai, therefore, ceased to exist thereafter. The mortgage could only be effective at the most for the life-time of Sm. Rupa Kunwar. On this ground possession was claimed as against Newaj Rai. In contesting the suit, Newaj Rai also pleaded that Ram Baran Das had died as member of the joint Hindu family and that Sm Rupa Kunwar was not in possession as an heir of a separate brother but only in lieu of maintenance. It was further alleged that in execution of a simple money decree against Sheo Saran Das the rights of Sheo Saran Das in this property had been sold and had been purchased by Newaj Rai himself. Consequently, no rights remained in the heirs of Sheo Saran Das who could, therefore, not claim possession over the property. The trial Court accepted the plea of Newaj Rai, held that the rights of Sheo Saran Das in this property had been sold in execution of the simple money decree in 1875 and on this finding dismissed the suit. Appeal No. 138 of 1904, was filed against this judgment, but that was also dismissed. The question is whether this decision in that suit operates as res judicata in the present suit. The learned civil Judge of the lower Court has held that the judgments in Suit No. 262 of 1903 and in Appeal No. 138 of 1904, cannot operate as res judicata because the respondents in this case are litigating under a different title from that in which they were litigating in that case. Mr. Khare, appearing on behalf of the appellant has not been able to show that the title under which the respondents are litigating was the same in Suit No. 262 of 1903 as the title under which the claim has been raised in the present suit. In Suit No. 262 of 1903 the respondents had claimed the right to the property as full owners of it by survivor ship on the death of Ram Baran Das. They did not claim as reversioner of Ram Baran Daa nor did they allege that Ram Baran Das was a separated brother. In the present case the title claimed is entirely different. Hence the respondents are claiming title as reversioners of Ram Baran Das treating him as a separated brother. They have accepted that Sm. Rupa Kunwar had succeeded to the property as heir of Ram Baran Das and they claim title to this property only as reversioners of Ram Baran has on the death of Sm. Rupa Kunwar, the last limited owner. Thus the title is clearly different. The case law on this point has been well discussed by the learned, civil Judge and it appears to be unnecessary for me to go into it against. The learned counsel for the appellant has not discussed the case law before me and has not attempted to point out that the lower Court has incorrectly applied it.

    4. An alternative argument was also advanced by the learned counsel for the appellant that, even if the decision in Suit No. 262 of 1903 does not operate as res judicata, the determination in that suit must be treated as bringing into operation the principle of estoppel against the respondents. His contention was that the decision in that suit shows that the respondents had allowed this property to be sold as that property in year 1873 and even if they had or title in that property at that time they acquired it subsequently as reversioner of Ram Baran Das on the death of Sm. Rupa Kunwar. Consequently it is argued that on principle of ‘feeding the estoppel” it must be held that the respondents are now stopped from denying that the property had belonged to Sheo Saran Das in year 1875 and had been sold and purchased by the appellant's predecessor. This argument, in my opinion, has no force at all. The principle relied upon by the learned counsel for the appellant is in India incorporated in Section 43 of the Transfer of Property Act. Section 43 of the Transfer of Property Act is, however, entirely inapplicable in the present case because the transfer of the property rights of Sheo Saran Das to Newaj Rai in 1876 was not a voluntary transfer but by an auction sale. Section 43 of the Transfer of Property Act does not apply to auction salel at all. In the auction sale, it cannot be said that the heirs of Sheo Saran Das who were the judgment-debtors had given any assurance to the auction purchaser that they had no right, title or interest in this property, apart from that which was being sold. In fact there was no guarantee by Sheo Saran Das at all that he had any right in that property. It is only in the case of voluntary transfers that the transferor is presumed to guarantee his title and it is on this account that under Section 43 of the Transfer of Property Act, he is estopped from denying his title even if he acquires it subsequently. The case law on this point in this country in quite clear. It has always been held that the principle of Section 43 of the Transfer of Property Act cannot be applied to auction sales. The learned counsel for the appellant referred me in this connection to the case of Prosanna Kumar v. Srikantha, 40 Cal. 173 at pp. 184 and 185. I, however, find that case is of no assistance at all to him. In that case also, the Division Bench of the Calcutta High Court remarked as follows:

    “The case of an execution sale, however, stands on an obviously different footing. The decree holder does not guarantee the title of the judgment-debtor; the intending purchaser knows that under the law he can acquire nothing beyond the right, title and interest of the judgment debtor. No doubt, the decree holder himself, who is bound to notify before the sale all encumbrances on the property about to be sold, cannot subsequently set up against the execution purchaser a secret encumbrance in his own favour.”

    5. It will be seen that in that case all that was held was that the principle of estoppel could be invoked against the decree-holder who, having had the property sold as property of the judgment-debtor, might subsequently try to claim a title in himself by virtue of some secret encumbrance. There was no question of any principle of estoppel arising as against the judgment-debtor. It is true that on p. 185 there was a mention of an American case of Varnum v. Ahhat, (1815) 12 Mass 474, wherein it had been held “that the extent of an execution raises an estoppel as much as in the case of conveyance,” but at the same time it was also mentioned that, in a large number of cases from California, Indiana and other places the contrary view had been taken that an execution sale of property not belonging to the judgment-debtor does not stop him from asking against the purchaser's title subsequently acquired. Thus, this Calcutta case also indicates that the consensus of opinion is that a judgment-debtor cannot be deemed to have guaranteed any title in himself when his property is sold in execution of a decree and he is, therefore, not barred by the principle of estoppel from asserting any subsequently acquired title. In the present case, the respondents claimed that Sm. Rupa Kunwar was in possession as heir of Ram Baran Das. This necessarily implies that in the year 1875 that they had no title at all in this property. The fact that this property was sold as the property of Sheo Saran Das in 1875 does not estop the respondents from now claiming title as reversioner of Ram Baran Das. While Sm. Rupa Kunwar was alive, the respondents were merely reversioners and had no title or interest in the property. In these circumstances it is clear that in this case no principle of estoppel shuts out the respondents from claiming the title as mortgagors which they have claimed in this suit.

    6. In view of this decision on this contested point there is no force in the S.A No. 1501 of 1946 either. Both these appeals fail and are dismissed with costs.

    K.S

    7. Appeals dismissed.

    Use AI to get other relevant cases.

    Comments

    Kamta Rai v. Nand Kishore
    (Oct 25, 1950)